21% on the $50,000 original investment -- less property taxes, insurance and (average) repairs... IS IT WORTH IT? Seems like it to me...(?)
2007-01-30 14:06:50 · 7 answers · asked by WonderWhy 2 in Business & Finance ➔ Renting & Real Estate
No. This is the real deal. Highly desirable area. Guessing that taxes would be 1,000 a year and insurance the same. Property is appreciating by leaps and bounds here. ... And there's none left. No new water hook-ups allowed!!!
2007-01-30 14:16:24 · update #1
It's a tourist town.
2007-01-30 14:16:57 · update #2
NEW Construction. We have no slums here. No crime. YET.
2007-01-30 14:18:51 · update #3
It's definitely worth it as long as you have a good tenant paying the rent on time. You are yielding about a 17.6% profit on investment (10,800 gross rent per year - taxes+insurance 2000= 8,800/50,000=17.6%). As time goes on your profit will be higher due to rent increases. You should set aside a set amount of money per month for repairs and place it in a interest bearing account. Good Luck.
2007-01-30 15:59:11 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
You need to tell us what your expenses are before anyone can tell you whether you are making a reasonable profit. And then you have to compare the net income you are receiving with whatever else you might be able to get if you were instead to sell the building and invest the money in something else. And then you also have to factor in the possibility of appreciation. If you think the value of the building is going to increase significantly, that may be more important than the profits you are making each year.
2007-01-30 14:12:33 · answer #2 · answered by rollo_tomassi423 6 · 0⤊ 0⤋
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If the building isn't falling down anything over $450 a month is worth it. You get taxable depreciation AND real world appreciation on your investment. In my area commercial property double in value every 7-8 years
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2007-01-30 14:12:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you're making $900 a month on a $50,000 investment...that my friend....is HOT.
Some fools get into mortgages for houses they intend to rent out that cost $300,000 over a 30 year mortgage...and still get just 900 a month.
Jump to it my man...your investment portfolio is about to begin!
2007-01-30 14:11:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Whoah! Has your school district not gotten new text books since the 60s? Or if they have please tell me where this commercial building is located. I'd like to invest there.
2007-01-30 14:09:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it seems a little low actually.
you want to think about location. then the building structure. maintenace. if it is a bad area or the roof have problem, its even worst to get sued.
2007-01-30 14:11:09 · answer #6 · answered by Sam T 2 · 0⤊ 0⤋
?
2007-01-30 14:10:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋